Council tax could rise by more than 5%

Rochdale residents could see their council tax bills rise by around 5% for 2019/20, according to a report.

Full details are not scheduled for release until a budget-setting meeting in February, but officers have included a set of likely proposals as part of financial preparation works for 2019/20.

With the council facing a funding gap of £3.5m, leader Allen Brett  has confirmed the ‘general levy’ element of the bill will rise by 2.99% – the maximum allowed without calling a local referendum.

The ring-fenced adult social care precept will also rise by 1% –  the most the council can increase it by without going over the 6%-over-three-years limit set by the government in 2017/18.

GM Mayor Andy Burnham has yet to decide what to do in terms of his mayoral precepts, which include the police and crime levy.

Last month the government announced it would allow police and crime commissioners (PCCs) to double the policing precept from £12 to £24 on Band D properties.

In addition, for planning purposes, Rochdale Council is anticipating the Mayoral General Precept could be hiked by a maximum of £8 on band D properties.

The Mayor’s office is yet to put forward its proposals, which will have to go out for a period of public consultation.
But should they opt for the measures set out above, those in Band D properties – valued at between £68,001 and £88,000 in 1991 – will pay an extra £92.70 per year.

That represents an overall rise of 5.25% – slightly less than last year’s overall increase of 5.52%.

Critics may question whether they are receiving value for money for their council tax, but Councillor Brett says the increases are essential for the council to set a balanced budget.

Highlighting that the council has had to absorb £178m in funding cuts since 2009, he said: “Nobody likes increases in charges, but I would say to people the government has taken away hundreds of millions from our budget, if you had that taken away, would you be able to balance the books? The answer is ‘no’.”

However he slammed the council tax system, claiming it makes the rich richer, while the poor stay poor.

“I think the whole council tax system is unfair,” he said. “Council tax is a regressive tax and Rochdale suffers very badly in that it has a very low base.

“A 1% rise in Rochdale raises less than it would in in the leafy suburbs of Manchester and in the leafy suburbs of Surrey a 1pc rise would raise double or even treble the amount it would in Rochdale.”

Conservative opposition leader Councillor Ashley Dearnley said it was a question of balancing the need to fund services and people’s ability to pay.

“I think possibly it’s all a balance, we need to get more money in to provide services, and none of us want to see the government putting up income tax, as such there’s a balance between the two.

“But we should not always think we can go right to the limits the goverment allows us to, we need to bear in mind how much people can really afford.”

The Tory chief said he felt the 2.99% increase and adult social care precepts were probably fair, but said the public needed to see results for any increase in the policing precept.

Nick Statham, Local Democracy Reporter